The U.S. Postal Service’s transformation plan sent to Congress this month recommends turning the postal service into a commercial government operation with financial and labor flexibility more commonly found in the private sector.
This is the best way for the USPS to compete in a changing economy while maintaining universal service, postmaster general John E. Potter said in announcing the plan April 5.
The U.S. Postal Service had a second-quarter net loss of $303 million, $123 million greater than planned, USPS chief financial officer and executive vice president Richard J. Strasser Jr. told the agency’s Board of Governors at its monthly meeting yesterday. Strasser also said the USPS expects continuing loss in volume during the third quarter, which ends May 22. He said the USPS could lose as much as $800 million in the third quarter if the economy fails to improve enough to increase mail volume. The postal service’s second quarter was from Dec. 1 to Feb. 22.
Read MoreThe U.S. Postal Service’s Board of Governors yesterday accepted the Postal Rate Commission’s recommendation to increase postal rates an average of 7.7 percent on June 30. The increase will generate $4.16 billion in additional revenue for the USPS. Regular Standard Mail rates would increase an average of 7.8 percent; Nonprofit Standard, 6.6 percent; Commercial Enhanced Carrier Route Standard Mail, 6.2 percent; and Nonprofit Enhanced Carrier Route Standard Mail, 6.5 percent.
Read MoreUnited Parcel Service Inc. chief executive Michael Eskew on Wednesday said he was confident the express delivery company could reach agreement on a new contract with the Teamsters, representing 220,000 workers outside the company’s airline division, by a July 31 deadline. ‘We know we have the best people in the business and we’d like to give them a fair contract going forward, but we’d also like to have the ability to grow our business over the long term,’ Eskew told Reuters in an interview.
Read MoreTibbett & Britten Group North America Inc. (TBGNA), the North America division of T&B, was recently contracted by Procter & Gamble to manage three warehouses in the US belonging to the world-famous manufacturer of household articles
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